83R17646 CJC-D
By: Menendez H.B. No. 2387
Substitute the following for H.B. No. 2387:
By: Frank C.S.H.B. No. 2387
A BILL TO BE ENTITLED
AN ACT
relating to the ad valorem taxation of certain tangible personal
property located inside a defense base development authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 379B.011, Local Government Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A commercial product that is in the process of being
manufactured, assembled, or produced inside the authority is
presumed to be in interstate, international, or foreign commerce
and not located in this state for longer than a temporary period for
purposes of Sections 11.01 and 21.02, Tax Code, if:
(1) the entity manufacturing, assembling, or
producing the product is engaged in a business activity described
by sectors 31 through 33 of the 2012 North American Industry
Classification System (NAICS); and
(2) the product is eligible under guidelines and
criteria established by the commissioners court of the county in
which the authority is located under Section 312.002, Tax Code.
(d) Tangible personal property located inside the authority
is presumed to be in interstate, international, or foreign commerce
and not located in this state for longer than a temporary period for
purposes of Sections 11.01 and 21.02, Tax Code, if the owner
demonstrates to the chief appraiser for the appraisal district in
which the authority is located that the owner intends to
incorporate the property into or attach the property to a
commercial product described by Subsection (c).
SECTION 2. The change in law made by this Act applies only
to ad valorem taxes imposed for a tax year beginning on or after the
effective date of this Act.
SECTION 3. This Act takes effect January 1, 2014.